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In this tutorial, attorney Elizabeth Potts Weinstein discusses the process of closing or canceling your Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN, similar to a social security number for individuals, serves as a tax identification number for businesses, including sole proprietorships, LLCs, and corporations. When closing a business, it’s important to formally close the EIN to avoid any future filings, payments, or taxes due, even after the business is no longer operational. Additionally, closing the EIN helps prevent potential fraud that could occur if accounts remain active.
